The author is a Reuters Breakingviews columnist. The opinions expressed are her own.

By Katrina Hamlin

HONG KONG, May 15 (Reuters Breakingviews) - Hong Kong is calling for robotaxi operator Pony AI PONY.O. The $6 billion Chinese company is exploring an offering in the city just six months after its New York initial public offering, Bloomberg reported on Wednesday, citing sources. As fraught U.S.-China relations raise the spectre of forced delistings from American exchanges, setting up a second home is becoming an urgent priority for many firms. Compatriots, including Alibaba 9988.HK, BABA.N, show that the Asian financial hub can now be an attractive alternative.

Despite a détente in President Donald Trump’s trade war, there is still a real risk that geopolitical tensions spill over to Wall Street. Last month, U.S. Treasury Secretary Scott Bessent revived fears that authorities could boot out Chinese firms from New York by warning all options are "on the table" when asked about this possibility. Pony AI's November IPO prospectus also flagged delisting risks if regulators decide they do not have full access to the company's audits.

Many U.S.-listed Chinese issuers, including Alibaba, Baidu 9888.HK, BIDU.O, and electric-car trio Nio 9866.HK, NIO.N, Xpeng 9868.HK, XPEV.N and Li Auto 2015.HK, have added a Hong Kong ticker to hedge against such a scenario. Although some – including Trip.com TCOM.O and the $170 billion PDD PDD.O – are holding out, analysts at Bernstein in April observed that investors have prioritised stocks that are dual-listed over ones that are not.

Hong Kong offers a decent backstop. Although in the past, thin trading volumes led some, such as fashion house Tapestry TPR.N in 2017, to leave the city’s bourse, that is now less of a concern. E-commerce giant Alibaba, for instance, saw roughly $115 billion worth of its shares trade hands in Hong Kong over the first quarter, more than a third of its total turnover. For others like NetEase 9999.HK and Xpeng, the proportion is even larger. The stock connect scheme, which allows mainland investors to invest in eligible Hong Kong-listed companies, has helped too.

True, for many tech companies the U.S. probably remains the first venue of choice, thanks to a deeper pool of capital, higher valuations and investor familiarity with emerging industries like autonomous driving. Even so, Chinese firms may find a second Hong Kong home quite welcoming.

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CONTEXT NEWS

Robotaxi operator Pony AI has confidentially filed for a Hong Kong listing, Bloomberg reported on May 14, citing sources. An offering could take place this year, but the size isn’t yet known, per the report.

Pony AI has been listed in New York since November, when it raised more than $400 million through the listing and a private placement.

(Additional reporting by Aditya Srivastav; Editing by Robyn Mak and Ujjaini Dutta)

((For previous columns by the author, Reuters customers can click on HAMLIN/katrina.hamlin@thomsonreuters.com; Reuters Messaging: katrina.hamlin.thomsonreuters.com@reuters.net))